CODE 18-77

CONFIDENTIAL

Heads of Geographical Departments

AIR SERVICES: THE FCO INTEREST

1.

Reference

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Within Whitehall, the responsibility for the negotiation, administration and monitoring of Air Services Agreements (ASAs) between the UK and other countries rests with the Civil Aviation International Relations Division of the. Department of Trade. Traditionally, these ASAS and their attendant negotiations have been regarded as primarily commercial negotiations between the respective airlines, and HMG's policy has been to separate out these discussions from the general run of bilateral political issue: Discussions of air services have, however, become increasingly political in their content - as was recently evidenced by the round of negotiations with Malaysia.

2.

Within the FCO, MAED acts as the link between Missions, Geographical Departments and CAIR. Over the years we have established close and effective working relations with the DOT officials concerned and have found them responsive to guidance from us on political questions. But the system can only work effectively when we in MAED are kept informed by Posts and FCO Departments of potentially sensitive issues which could have an impact on air service questions.

3.

In most cases, Departments are aware of our interests and co-ordination within the FCO and with the DOT has worked effectivel; There have been a few recent instances, however, where the Depart- ment of Trade have felt that FCO Departments and Posts have been taking initiatives on air services questions which have been unhelpful to their and the airlines, cause. These could have been avoided or the damage limited if MAED had been kept in closer touch.

4.

In order to avoid for the future any such misunderstandings with the DOT, I should be grateful if Heads of Departments to whom this minute is. copied, would ensure that it is seen by all their Desk Officers and that MAED's interest in this subject is kept fully in mind.

Ray

J W D Gray

Maritime, Aviation and Environment Department

23 June 1982

CONFIDENTIAL

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